Liabilities are monetary obligations that a company may have that are payable to a third party. Employee wages and benefits, taxes, insurance, accounts payable, and any expenses incurred during normal operation are all examples of liabilities. To define liabilities, a business must account for all current and long-term debts, as well as money received in advance in exchange for future transactions.

Cash or cash equivalent transfers to the owned entity are used to settle liabilities. This liabilities definition is useful in completing balance sheets and company evaluations because it accounts for any expenses a business may incur.

The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.

If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.